Annual Report 2016 Trustees/Directors Malcolm Short Alec Wilson Tina Ngatai David Tapsell (Chairman) Non-Trustee Directors Ana Morrison (To October 2016) Rawiri Waru Monty Morrison Jackie Aratema Secretary Accountant General Manager Property Manager Murray Patchell Alexander Wilson Peter Faulkner John Powell Office: Level 1, Pukeroa Oruawhata House 1/1176 Amohau Street, PO Box 12003 ROTORUA Phone (07) 348-8887 Fax (07) 343-1051 Website: rotorua.deloitte.co.nz Accountants: Deloitte (Rotorua) Auditors: BDO (Rotorua) Solicitors: Holland Beckett and Graeme Dennett Bankers: Bank of New Zealand and ANZ 1 PUKEROA ORUAWHATA GROUP ~ Annual Report 2016 CONTENTS Directory.............................................................................1 Contents .............................................................................2 Agenda . .3 Minutes – AGM – 7th November 2015 . 4 Chairman’s Report ....................................................................7 Property and Development Sub-Committee Chairman’s Report ............................11 Property Report......................................................................12 Finance & Expenditure Sub-Committee Chairman’s Report ...............................15 Financial Highlights .................................................................17 Governance Structure ................................................................23 Owners Grant Policy .................................................................24 Pukeroa Oruawhata Charitable Trust ...................................................27 Ngati Whakaue Education Endowment Trust Board Chairman’s Report . .28 Consolidated Financial Statements .....................................................34 ENTITIES: POT - Pukeroa Oruawhata Trust POHL - Pukeroa Oruawhata Holdings Ltd PLHL - Pukeroa Lakefront Holdings Ltd PPL - Pukeroa Properties Ltd PPL2 - Pukeroa Properties (No.2) Ltd WHL - Waihunuhunukuri Holdings Ltd LHRDL - - Lake House Resort Developments Ltd LRTL - - Lake Road Tavern Ltd POTSL - - Pukeroa Oruawhata Trustee Services Ltd (as trustee of Pukeroa Oruawhata Charitable Trust) LTL - Lake Tavern Limited RCL - Rotorua Casino Limited CRL - Casino Rotorua Limited PUKEROA ORUAWHATA GROUP ~ Annual Report 2016 2 TRUST ANNUAL GENERAL MEETING Held at Tamatekapua Meeting House, Ohinemutu, Rotorua on Saturday 19th November 2016 at 10.00am. AGENDA 1. Minutes. 2. Annual Reports. 3. Appointment of Auditor. 4. Distribution. 5. Election Results. 6. Lunch. PLEASE NOTE THAT VOTING RIGHTS AT THE MEETING ARE RESTRICTED TO REGISTERED OWNERS OF THE TRUST. 3 PUKEROA ORUAWHATA GROUP ~ Annual Report 2016 PUKEROA ORUAWHATA TRUST MINUTES OF THE ANNUAL GENERAL MEETING OF OWNERS HELD AT TAMATEKAPUA ON SATURDAY 7TH NOVEMBER 2015 AT 10.00AM. Chairman: Malcolm Short. Secretary: Murray Patchell. Mihi & Karakia: Pihopa Kingi. Attendance: 133. Apologies: 36. (David Tapsell/Wiki Flavell) Carried MINUTES: Of the previous AGM held on 15 November 2014 were taken as read and confirmed. (Tony Wihapi/Alec Wilson) Carried MATTERS ARISING: Waaka Vercoe referred to a section in Rotorua that was given by Ngati Whakaue generously to Ngati Awa. He is on the Ngati Awa Board and has proposed that this be returned, and he sought clarification on whether this should be returned to Pukeroa Oruawhata Trust. Chairman confirmed that Pukeroa Oruawhata Trust would be happy to have this returned. In the meantime, the Trust has cleared the section. It will be used as a recreation reserve along the river. CHAIRMAN’S REPORT: Malcolm Short tabled and read his report. RESOLVED: “That the Chairman’s report be adopted.” (Malcolm Short/Stuart Harris) Carried MATTERS ARISING: 1. Tony Wihapi queried the price of the RSA building. Chairman confirmed this was $980,000 and was significantly less than the Trust expected to pay. Tony Wihapi noted the comments regarding Whakarewarewa gave a different perspective from what was stated at Te Komiti Nui meeting. He said if the arbitration gave POT lands to Wahiao then surely it was important to challenge that. Chairman advised the parties disagreeing had accepted to be bound by the arbitrator’s decision. The prize is the Te Puia business worth $30 million, not the land rental. POT has had to bite the bullet and go for the main prize. Tony also sought clarification between the legal advisers. Chairman explained the need to separate lawyers so that the land lawyers did not get involved in the business negotiations. Tony said the report made the risks clear. What was not clear was how unity will be achieved between the parties. 2. Waaka Vercoe said this was the finest report he has read and he commends the Committee. He acknowledged with appreciation the hard work over the years of Pihopa Kingi and Stuart Harris. PUKEROA ORUAWHATA GROUP ~ Annual Report 2016 4 The trustees can be very proud of their achievements. He suggested looking at a motto that gave the background story. Chairman suggested Waaka write to the Trust with his thoughts. 3. Runa Morrison-Huitema enquired if the Trust would consider renting a building to the 12 community house non-profit organisations that have been evicted from Council buildings due to the buildings being unsafe. They have 3 years guaranteed funding from Council. Chairman advised that the Trust does provide some assistance to community groups but there was no suitable building available at present. He suggested she write to the Trust and the Trust will monitor if anything becomes available. Tony Wihapi queried if the Endowment should be approached to buy a building. Chairman advised that the Endowment have no power to purchase buildings. FINANCIAL REPORT: Murray Patchell took the meeting through a summary of the financial highlights and the consolidated financial statements. A number of questions were answered. Tony Wihapi suggested the trustees look at vesting ownership directly into shareholders now that the financials were aligning with publicly accountable businesses. He also suggested the Trust look at equity sharing with investors to reduce their liability to debt. Geoff Rice expressed some concern about transferring ownership to shareholders that would have the ability to sell shares and potentially lose everything. He was also concerned at JV partners coming in and taking control. The Secretary responded that with potential changes to Te Ture Whenua Act, it was a good time to consider the wider issues of structure and the Trust will be looking at that in the next couple of years. RESOLVED: “That the financial reports for the year ended 31 March 2015 be received.” (Alec Wilson/Maureen Jehly) Carried PROPERTY REPORT: Peter Faulkner presented the property report. Miriama Searancke expressed concern at the lack of consultation with residents at Ohinemutu over the Lake House developments. Peter acknowledged that consultation was still to occur with neighbours. She was also concerned at the lack of kaumatua flats being developed on Tunohopu Street and felt the Trust weren’t looking after the kaumatua. She felt there should be a survey of Ohinemutu residents and is quite upset at this. Other speakers expressed their concerns at the lack of progress with kaumatua flats. Tony Wihapi noted the issue was lack of consultation and he felt the Trust should meet with residents. Chairman confirmed that consultation will follow with residents and the Trust will be complying with all Council processes. RESOLVED: “That the property report be received.” (Alec Wilson/Sonja Cooper) Carried PUKEROA ORUAWHATA CHARITABLE TRUST: Chairman referred to the tabled report. Matthew Heke expressed concern at the exclusion of Owhata and Te Roro o Te Rangi Marae from the Marae grants policy. Chairman invited Matthew to write to the Trust and the issues will be considered by the trustees. Arama Pirika said that some of the lands in POT are Te Roro o Te Rangi. He was concerned that decisions had been made without consultation and this should be addressed so that people do not come to the meeting in anger and can compliment the excellent reports. Tony Wihapi felt Te Roro o Te Rangi were mana whenua and should be put back into the list of Marae. He asked if the hui would pass a motion. Chairman advised that the trustees will consider once the letter had been received. Anaru Te Amo noted that the Ngati Whakaue Assets Trust supported Marae in settlement negotiations. NGATI WHAKAUE EDUCATION ENDOWMENT TRUST BOARD: 5 PUKEROA ORUAWHATA GROUP ~ Annual Report 2016 Chairman referred to the tabled report and outlined the new Beverley Anaru scholarship established by Pita Anaru. RESOLVED: “That the Pukeroa Oruawhata Charitable Trust report and the Ngati Whakaue Education Endowment reports be received. (Alex Wilson/Iris Thomas) Carried AUDITOR: RESOLVED: “That BDO Rotorua be reappointed auditors for the next financial year.” (David Tapsell/Maureen Jehly) Carried DISTRIBUTION: RESOLVED: “That $700,000 be made available for owners grants as per the policy tabled.” (Maureen Jehly/Haihaiti Barrett) Carried ELECTION RESULTS: Murray Patchell as scrutineer advised the outcome of the postal vote and that Tina Ngatai was the highest polling candidate. Application will be made to the Maori Land Court for her appointment in due course. GENERAL BUSINESS: 1. Tony Wihapi suggested that appropriate recognition be made by the Board to Pihopa Kingi and Stuart Harris for their long service on the Trust. Chairman advised that an appropriate taonga will be given at this year’s annual trustees’ dinner. Meeting closed at 12.40pm with karakia from Pihopa